GA A'8oo . RI R4io Cz=-...,.1;,c 19C14- 95 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT COASTAL PLAIN REGIONAL LIBRARY TIFTON, GEORGIA YEAR ENDED JUNE 30, 1995 COASTAL PLAIN REGIONAL LIBRARY - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL FUND TYPES 3 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES 5 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 6 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 14 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 15 SCHEDULES 1 CASH AND CASH EQUIVALENTS 16 2 ACCOUNTS RECEIVABLE 17 SCHEDULE OF REVENUE 3 STATE 18 4 FEDERAL 19 5 LOCAL AND OTHER 20 SCHEDULE OF EXPENDITURES BY OBJECT 6 GENERAL AND SPECIAL REVENUE FUNDS 21 7 LOTTERY PROGRAMS 22 8 MEMBERSHIP OF LIBRARY BOARD 23 9 SCHEDULE OF SALARIES AND TRAVEL 24 COASTAL PLAIN REGIONAL LIBRARY - TABLE OF CONTENTS - SECTIONil FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 17, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation and Director and Members of the Coastal Plain Regional Library Board INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Coastal Plain Regional Library, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Library's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows: * The general purpose financial statements of the Library did not contain a General Fixed Assets Account Group to account for property, equipment and inexhaustible collections and books owned by the Library which should be included to conform to generally accepted accounting principles. The aggregate effect on the general purpose financial statements of this variance or omission has not been determined, but is believed to be material. 95ARL-42 In our opinion, except for the effects on the general purpose financial statements ofthe matter referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Coastal Plain Regional Library as ofJune 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Coastal Plain Regional Library taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 9), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements of the Coastal Plain Regional Library. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, t:~ Claude L. Vickers State Auditor CLV:dt 95ARL-42 COASTAL PLAIN REGIONAL LIBRARY - 1- COASI& ~N BE!:!IONAL LIBRARY ~QM~NEQ BALAN~E St:1EET & B,!NQ D'.fES ~Q A~~Q!.!~ GROUP JUNE 30, 1995 EXH1B1TA MEn Cash and Cash Equivalents Accounts Receivable Amount to be Provided In Future Years For Payment ol CornpeMatad Absences Tolal Assets GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum On~} JUNE 30, 1995 JUNE 30, 1994 $ 32,348.12 $ 32,348.12 $ 112,139.73 2,994.63 $ 1,903.15 4,897.78 2,395.42 $ 14,085.43 14,085.43 16,054.56 $ 35,342.75 $ 1.903.15 $ 14.085.43 $ 51.331.33 $ 130.589.71 LIABILIIIES~QB.!NPEQV!IY LIABILIIIES Cash Overdraft Accounts Payable Expired Grant Balances Payable Deferred Revenue Compensated Absences $ $ 271.77 Tolal Llabilities $ 271.77 $ FUND EQUITY Fund Balances Un,-ved Undesignated 35,070.98 Tolal Liabilities and Fund Equity $ 35,342.75 $ 1,903.15 $ 1,903.15 $ 0.00 1,903.15 $ $ 14,085.43 14,085.43 $ 1,903.15 271.77 $ 14,085.43 16,260.35 $ 22,508.48 183.02 71,986.70 16,054.56 110,732.76 35,070.98 19,856.95 14,085.43 $ 51,331.33 $ 1301589.71 The notes to the general purpose financial statements are an integral part of this statement. 2 COASTAL PLAIN REGIONAL LIBRARY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL FUND TYPES YEAR ENDED JUNE 30, 1995 EXHIBITB REVENUES State Funds Federal Funds local and Other Funds Total Revenues EXPENDITURES Current Program Services Technical Services Administration Maintenance and Operations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 GENERAL FUND SPECIAL REVENUE FUND TOTALS {Memorandum On!rl YEAR ENDED JUNE 301 1995 JUNE 301 1994 $ 328,535.16 $ 619.44 270,922.35 $ 600,076.95 $ 72,199.10 $ 21,524.43 93,723.53 $ 400,734.26 $ 22,143.87 270,922.35 693,800.48 $ 336,623.45 28,008.81 271,526.07 636,158.33 $ 52,958.07 $ 1,136.29 515,239.50 15,529.06 $ 584,862.92 $ $ 15,214.03 $ 19,856.95 21,736.83 $ 71,986.70 93,723.53 $ 0.00 $ 0.00 74,694.90 $ 1,136.29 587,226.20 15,529.06 678,586.45 $ 15,214.03 $ 19,856.95 79,081.69 603.36 505,257.68 19,575.60 44,576.22 649,094.55 -12,936.22 32,793.17 FUND BALANCE JUNE 30 $ 351070.98 $ 0.00 $ 351070.98 $ 191856.95 The notes to the general purpose financial statements are an integral part of this statement. -3- COASTAL PLAIN REGIONAL LIBRARY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995 EXHIBITc REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Program Services Technical Services Administration Maintenance and Operations Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1994 Adjustments FUND BALANCE JUNE 30, 1995 GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) $ 359,905.00 $ 3,410.00 48,373.00 $ 411,688.00 $ 328,535.16 619.44 270,922.35 600,076.95 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 212.40 $ 72,199.10 19,701.00 21,524.43 $ 19,913.40 $ 93,723.53 $ 52,923.00 $ 1,000.00 341,630.00 16,635.00 52,958.07 1,136.29 515,239.50 15,529.06 $ 412,188.00 $ 584,862.92 $ -500.00 $ 15,214.03 19,332.81 19,856.95 $ 18,832.81 $ 35,070.98 $ 19,913.40 $ 21,736.83 72,661.56 71,986.70 $ 92,574.96 $ $ -72,661.56 $ 72,277.27 -376.29 93,723.53 0.00 0.00 -~--- $ -760.58 $ 0.00 The notes to the general purpose financial statements are an integral part of this statement. -5- COASTAL PLAIN REGIONAL LIBRARY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Coastal Plain Regional Library operates pursuant to Official Code of Georgia Annotated Sections 20-5-40 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia. With the exceptionofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Library have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant ofthe Library's accounting policies are described below. REPORTING ENTITY In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Coastal Plain Regional Library is determined to be a joint venture. The Library Board consists ofeight members; one member appointed by the Victoria Evans Memorial Library Board, one member appointed by Carrie Dorsey Perry Memorial Library Board, one member appointed by the Cook County Library Board, one member appointed by the Irwin County Library Board and four members appointed by the Tifton - Tift County Library Board. The Board is without authority to determine the amount of its funding, except by submission of budget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances of local funds for continued operations and is the lowest level of oversight responsibility for the Library's operations. The Coastal Plain Regional Library is located in Tifton, Georgia, and serves Berrien, Cook, Irwin, Tift and Turner Counties. FUND ACCOUNTING The Library uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. - 6- COASTAL PLAIN REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Acco_unt Group is not presently maintained by the Library. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. The general purpose financial statements account for all State, Federal, Local and Other funds under control ofthe Library, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material compensated absences. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. - 7- COASTAL PLAIN REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL PURJ>OSE FINANCIAL STATEMENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental funds are accounted for using-the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. BUDGET The Coastal Plain Regional Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Library at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings and N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. RECEIVABLES Receivables consist of grant reimbursements due from Federal and State granters for expenditures made but not reimbursed, allotted funds from participating local governments, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been - 8- COASTAL PLAIN REGIONAL LIBRARY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. COMPENSATED ABSENCES Compensated absences represent obligations of the Library relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. INTERFUND TRANSACTIONS The Library has the following type of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, or results of operations in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not.been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. - 9- COASTAL PLAIN REGIONAL LIBRARY EXlilBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS Acceptable security for deposits consists ofany one of or any combination ofthe following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or ofthe State ofGeorgia, (4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $73,035.22. The bank balances were entirely covered by Federal depository insurance. Note 3: RISK MANAGEMENT The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; and natural disaster. The Library has obtained commercial insurance for risk of loss associated with torts and assets.. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any of the past three years. - 10 - COASTAL PLAIN REGIONAL LIBRARY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 3: RISK MANAGEMENT The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. In addition, the Library has elected to self-insure for all losses related to natural disaster. The Library has not experienced any losses related to these risks in the past three years. The Library participates in the Association County Commissioners of Georgia Self Insured Workers' Compensation Fund, a public entity risk pool organized on July 1, 1982 to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The Library pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with Midwest Employers Casualty to provide coverage for potential losses sustained by the Fund in excess of$400,000.00 loss per occurrence, up to $2,000,000.00. Note 4: GENERAL LONG-TERM DEBT The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: Compensated Absences Balance July 1, 1994 Deductions Leave Earned and Utilized (Net) Balance June 30, 1995 Note 5: CONTINGENT LIABILITIES $ 16,054.56 -1,969.13 $ 14 085 43 Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position. Note 6: ACCUMULATED EMPLOYEES' LEAVE Regular full-time employees earn annual leave ranging from .84 to 1.25 days each month depending upon the employee's length of continuous Library service with a maximum accumulation of fifteen days. Employees are paid at their daily rate ofpay for unused accumulated annual leave up to the maximum of fifteen days upon retirement or termination of employment. See Note 1 - Compensated Absences - 11 - COASTAL PLAIN REGIONAL LIBRARY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 7: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after IO years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest. The Library's payroll for employees covered by TRS for the year ended June 30, 1995, was $348,814.20; total payroll was $407,552.74. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. Total contributions made during fiscal year 1995 amounted to $58,635.85, of which $41,195.12 was made by the Library and $17,440.73 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll. - 12 ._ COASTAL PLAIN REGIONAL LIBRARY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 7: RETIREMENT PLANS TRS FUNDING STATUS AND PROGRESS The amount of the.total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board {GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure _of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows: Total pension benefit obligation $ 15,313,743,000.00 Net assets available for benefits, at cost 14,254,785,000.00 Unfunded pension benefit obligation $ 1,058,958.000 00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of$41,195.12 was actuarially determined and represented .0079% oftotal contributions made by all participating employers. Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. Note 8: SURETY BONDS The Library Director, Mr. Gary F. Frizzell, is bonded in the amount of$100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60330907, on which premium was paid through April 16, 1996. - 13 - COASTAL PLAIN REGIONAL LIBRARY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995 EXHIBITE ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets LOTTERY PROGRAMS LIBRARY SERVICES AND CONSTRUCTION ACT. TITLEI PUBLIC LIBRARY SERVICES TOTALS JUNE 301 1995 JUNE 301 1994 $ 0.00 $ 0.00 $ 76,027.46 - - - - - $ _____1,,_90.;;..3_._15_ 1,903.15 85.72 $ 0.00 $ 1,903.15 $ 1,903.15 $ _ _1s_.1_1_3._1s_ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Unreserved Undesignated Total Liabilities and Fund Equity $ 1,903.15 $ 1,903.15 $ 3,943.46 183.02 711986.70 $ 1,903.15 $ 1,903.15 $ 76,113.18 $ 0.00 $ _ _ _.,.0..0..0=$ 0.00 0.00 0.00 1,903.15 $ - - - - - 1,903.15 $ 76,113.18 See notes to the general purpose financial statements. - 14 - COASTAL PLAIN REGIONAL LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995 EXHIBITP REVENUES State Funds Federal Funds Total Revenues EXPENDITURES Current Program Services Administration Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 FUND BALANCE JUNE 30 LOTTERY PROGRAMS LIBRARY SERVICES AND CONSTRUCTION ACT TITLE I PUBLIC LIBRARY SERVICES TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ n,199.10 $ $ n,199.10 s $ 211524.43 21,524.43 $ n,199.10 s 21,524.43 93,723.53 $ 32,830.28 27,983.57 60,813.85 $ 212.40 $ 71,986.70 $ 72,199.10 $ $ 0.00 $ 0.00 21,524.43 $ 21,524.43 $ 0.00 $ 0.00 21,736.83 $ 71,986.70 93,723.53 $ 0.00 $ 0.00 23,941.55 42.02 36,830.28 60,813.85 0.00 0.00 $ 0.00 $ 0.00 $ o.oo s____o_.oo_ See notes to the general purpose financial statements. -15- COASTAL PLAIN REGIONAL LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1995 INTEREST BEARING ACCOUNTS Citizens Bank of Tifton, Tifton, Georgia Certificate of Deposit No. 7933 (5.50%) N.O.W. Account (2.75%) Trust Company Bank of South Georgia, NA, Albany, Georgia Certificate of Deposit No. 7933 (4.BO'K,) Money Market Account (2.90'K,) OTHER Petty Cash $ 10,000.00 487.02 18,000.00 1,907.95 $ 30,394.97 50.00 $ 30,444.97 See notes to the general purpose financial statements. - 16 - COASTAL PLAIN REGIONAL LIBRARY ACCOUNTS RECEIVABLE JUNE 30, 1995 SCHEDULE "2'' Education, Georgia Department of Federal Program Library Services and Construction Act Title I - Public Library Services Local Source Tifton-Tift County Library GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ $ -----2-,9-9-4.-63- 1,903.15 $ 1,903.15 2,994.63 $ 2,994.63 $ 1,903.15 $ ===4=,8=9=7=7.=8 See notes to the general purpose financial statements. - 17 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995 SCHEDULE "3" AGENCY/FUNDING GRANTS Education, Georgia Department of Public Libraries Salaries and Travel Library Materials Maintenance and Operations Lottery Programs Distant Leaming Media Center and Library Equipment GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 229,289.16 52,923.00 46,323.00 $ $ 212.40 71,986.70 229,289.16 52,923.00 46,323.00 212.40 71,986.70 $ 328,535.16 $ 72,199.10 $ 400,734.26 See notes to the general purpose financial statements. - 18 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1995 AGENCY/FUNDING SUB-GRANT Through Georgia Department of Education Library Services and Construction Act Title I - Public Library Services CONTRACT Through Georgia Department of Education Library Services and Construction Act Trtle Ill - Interlibrary Cooperation and Resource Sharing GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 21,524.43 $ 21,524.43 $- - -6-19.4-4 619.44 $ 619.44 $ 21,524.43 $ -====2=2,=1=43=.=87= See notes to the general purpose financial statements. - 19 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995 LOCAL SOURCES County Boards of Education Cook Tift Public Libraries Carrie Dorsey Perry Memorial Library (Berrien County) Cook County Irwin County Tifton-Tift County Victoria Evans Memorial Library (Turner County) OTHER SOURCES Donations Fines and Fees Interest Earned Lost and Damaged Books Photocopy Sales Reimbursements For Salaries and Employee Benefits Tifton-Tift County Library Rents Other SCHEDULE 5 GOVERNMENTAL FUND TYPE GENERAL FUND $ 2,210.00 1,200.00 8,450.00 8,450.00 5,467.98 15,099.99 5,968.00 767.80 210.00 2,586.03 3,466.46 329.00 214,194.98 2,250.00 272.11 $ - .......-2-7=0,9-2-2-.3=5 See notes to the general purpose financial statements. - 20 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30.1995 SCHEDULE "6" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials Utilities Communications and Insurance Dues and Fees Other Expenditures Nonoperating Costs Equipment Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 386,066.99 $ 106,977.90 3,072.29 10,664.54 1,449.25 52,958.07 7,142.71 11,955.29 3,001.00 536.39 21,485.75 $ 38.68 212.40 407,552.74 106,977.90 3,072.29 38.68 10,664.54 1,661.65 52,958.07 7,142.71 11,955.29 3,001.00 536.39 1,038.49 71,986.70 73,025.19 $ 584,862.92 $ 93,723.53 $ 678,586.45 See notes to the general purpose financial statements. - 21 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 SCHEDULE "T' EXPENDITURES Operating Costs Supplies Nonoperating Costs Equipment Total Expenditures DISTANT LEARNING MEDIA CENTER AND LIBRARY EQUIPMENT TOTAL $ 212.40 $ 212.40 $ 71,986.70 71,986.70 $ 212.40 $ - - - - - 71,986.70 $ .72,199.10 See notes to the general purpose financial statements. ~ 22 - COASTAL PLAIN REGIONAL LIBRARY MEMBERSHIP OF LIBRARY BOARD YEAR ENDED JUNE 30, 1995 BOARD MEMBER ADDRESS Ms. Joni Tygart, Chairperson (*) Route 3, Box 360 Nashville, Georgia 31639 Mr. Tommy Bargeron (*) P. 0. Box847 Tifton, Georgia 31793 Ms. Pat Cleary (*) 515 South Beech Street Ocilla, Georgia 31TT4 Ms. Helene S. Fleming (*) Route 1, Box 1175 Tifton, Georgia 31794 Ms. Brenda lnglehart 1107 Lower Brookfield Road Tifton, Georgia 31794 Ms. S. Helen McDowell (*) 205 South Pine Avenue Adel, Georgia 31620 Ms. Marie Mitchell (*) 737 Mclendon Street Ashburn, Georgia 31714 Mr. Fred W. (Buck) Rigdon (*) 424 Tift Avenue Tifton, Georgia 31794 Ms. Pat Stephens (*) Route 7, Box 468 Tifton, Georgia 31794 (*) Denotes Board Members Serving as of June 30, .1995 SCHEDULE "8" See notes to the general purpose financial statements. - 23 - COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1995 SCHEDULE? PERSONNEL Bacon, Ball, Britt, Calhoun, Cohen, Cooper, Coy, Dow, Eastars, Frazier, Frizzell, Funk, . Gibbs . Gooc:twin Gray, Griffin, Griffin, Griffis, Griner, Harper, Hester, HlM'1ter, . Jordan, Lewis McCurley, McDaniel, McEntyre, McMillian, Merritt, Moorman, Nalls, Nalls, Newberry, Nickerson, Jr., Suggs, Tolar, Tyson, Walker, Bernice P. Karen L. Christie M. Inez Wanda Dena Yvonne Judith D. Karen L. Jennifer L. Sherri L. Gary F. Terri J. Sara S. Barbara Stephanie' Fadella Salina Kathy E. Pamela L. RebeccaV. Sandra M. TammyT. Brian D. BemiceW. DonnaS. Janette K Benjamin A Annis Angela R. DeborahA Ashley M. Teresa S. JoanW. Donald J. Angela Diane Patricia F. Janice P. Barbara V. Total Cash Basis Accruals June 30, 1994 POSITION Head of Reference Department Clerk Secretary Library Assistant Library Assistant Reference Librarian Library Assistant Head Librarian Student Assistant Student Assistant Director Library Assistant Library Assistant Head of Circulation Substitute Library Assistant Student Assistant Extension Librarian Library Assistant Library Assistant Student Assistant Substitute Student Assistant Library Assistant Technical Services Librarian Student Assistant Library Assistant Assistant of Technical Services Student Assistant Secretary Student Assistant Head of Children's Department Bookkeeper Director Student Assistant Circulation Assistant Bookmobile Driver Library Assistant SALARIES $ 20,981.94 5,365.94 15,967.92 8,066.51 6,544.35 34,181.00 $ 5,020.30 29,410.59 669.39 631.13 41,470.16 3,549.00 2,722.55 16,714.08 56.65 2,577.42 5,215.62 39,596.40 4,675.50 3,682.80 4,411.38 637.00 3,038.64 492.19 36,388.20 3,089.43 346.50 16,425.96 1,942.29 13,629.54 3,430.62 2,401.03 23,032.14 18,030.40 2,598.26 15,345.07 5,133.00 10,081.84 $ 407,552.74 $ TRAVEL 283.29 124.53 693.33 911.81 555.31 753.88 3,322.15 -249.86 See notes to the general purpose financial statements. -24- ------ $ 407,552.74 $ 3,072.29 SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS COASTAL PLAIN REGIONAL LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Audit Control Number 73 72-94-02 Finding Resolved The audit report for the year ended June 30, 1994, reported that the Board failed to submit a copy of the 1993 audit report on a timely basis to the U. S. Department of Education from whom the Library received Library Services and Construction Act - Title VI, Library Literacy Program funds (CFDA 84.167). During the year under review, the Library submitted a copy of 1993 and 1994 audit reports to the U. S. Department of Education, as required. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) ADMINISTRATIVE REQUIREMENTS Inadequate Separation ofDuties Audit Control Number 7372-93-01 The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Library made some improvements regarding separation of employee's duties but still did not achieve an adequate degree of internal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7372-93-02 The audit report for the year ended June 30, 1994, noted that the management ofthe Coastal Plain Regional Library had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Library did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Library to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, equipment and inexhaustible collections and books owned by the Library and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS COASTAL PLAIN REGIONAL LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 ACCOUNTING CONTROLS (OVERALL) ADMINISTRATIVE REQUIREMENTS Inadequate Separation ofDuties Audit Control Number 7372-93-01 We concur with this finding. However, due to budgetary constraints, the Board was unable to hire the additional staffrequired to clear this finding. In November 1995, the Board approved a "Plan for Improving Internal Accounting Controls" which should result in an improvement in this area for FY96. The plan provides for the hiring of an Accounting Clerk and a division of some accounting functions among existing staff. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 7372-93-02 We concur with this finding. However, we have not yet been provided with a mechanism to establish a General Fixed Assets Account Group within the formal accounting records on GENESIS (we understand this is the desirable method of establishing a record-keeping system for fixed assets). Until a determination is made regarding whether or not a mechanism for GENESIS will be provided, we do not wish to invest the time and effort that would be required to establish a system of recording fixed assets outside the formal accounting records on GENESIS.